Zscaler acquires SPLX, enhancing AI security capabilities within its Zero Trust Exchange platform for improved asset protection.
Quiver AI Summary
Zscaler, Inc. has announced its acquisition of AI security company SPLX, enhancing its Zero Trust Exchange platform to incorporate features such as AI asset discovery, automated red teaming, and governance aimed at securing AI investments throughout their lifecycle. CEO Jay Chaudhry emphasized that this move positions Zscaler as a trusted partner for organizations looking to adopt AI securely. The acquisition aims to address the growing security challenges posed by expanding AI infrastructure, offering comprehensive solutions that include AI risk assessment, automated attack simulations, and improved governance to facilitate proactive protection of AI assets. SPLX's technology will allow Zscaler to strengthen its existing capabilities and provide deep visibility and control within development environments to ensure the safe integration of AI applications.
Potential Positives
- Acquisition of SPLX enhances Zscaler's Zero Trust Exchange platform with advanced AI security features, positioning the company as a leader in securing AI investments.
- Introduction of features like AI Asset Discovery, Automated Red Teaming, and AI Governance allows organizations to proactively protect their AI assets and comply with governance frameworks.
- The partnership with SPLX leverages their expertise in AI security, further strengthening Zscaler's capabilities in managing risks associated with rapidly evolving AI technologies.
- The press release highlights the growing market opportunity in AI security, with projected investments exceeding $250 billion by the end of 2025, indicating significant potential for Zscaler's growth in this sector.
Potential Negatives
- The press release contains several forward-looking statements that could mislead investors if the anticipated benefits of the acquisition do not materialize as expected.
- The integration of SPLX's technology poses a significant risk; challenges in successful integration could impact Zscaler's operational capabilities and customer satisfaction.
- The mention of retaining SPLX employees indicates potential instability; if key personnel leave, it could hinder the effective implementation of the acquired technologies.
FAQ
What is the recent acquisition by Zscaler?
Zscaler has acquired SPLX, an AI security pioneer, to enhance its Zero Trust Exchange platform.
How will SPLX's technology benefit Zscaler customers?
SPLX's technology will improve AI asset discovery, automated red teaming, and governance, securing AI investments throughout their lifecycle.
What is the significance of AI security in current infrastructure?
AI security is crucial as organizations face an expanding attack surface and need to protect valuable AI assets against threats.
What features does the enhanced Zscaler platform offer?
The platform includes AI asset discovery, automated red teaming, AI runtime guardrails, and governance support for proactive protection.
What is Zscaler's vision for AI adoption?
Zscaler aims to be a trusted partner for organizations, enabling secure and effective AI adoption while mitigating risks.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ZS Insider Trading Activity
$ZS insiders have traded $ZS stock on the open market 54 times in the past 6 months. Of those trades, 0 have been purchases and 54 have been sales.
Here’s a breakdown of recent trading of $ZS stock by insiders over the last 6 months:
- AJAY MANGAL has made 0 purchases and 12 sales selling 120,000 shares for an estimated $36,106,497.
- CHARLES H GIANCARLO has made 0 purchases and 8 sales selling 67,824 shares for an estimated $20,416,445.
- ROBERT SCHLOSSMAN (Chief Legal Officer) has made 0 purchases and 14 sales selling 29,010 shares for an estimated $8,597,970.
- SYAM NAIR (CTO) has made 0 purchases and 2 sales selling 33,011 shares for an estimated $8,470,995.
- ADAM GELLER (Chief Product Officer) has made 0 purchases and 9 sales selling 28,328 shares for an estimated $8,153,294.
- MICHAEL J. RICH (CRO and President of WW Sales) has made 0 purchases and 3 sales selling 25,996 shares for an estimated $7,617,249.
- ANDREW WILLIAM FRASER BROWN has made 0 purchases and 2 sales selling 20,333 shares for an estimated $6,033,118.
- RAJ JUDGE (EVP, Corp. Strategy & Ventures) has made 0 purchases and 2 sales selling 7,481 shares for an estimated $2,167,927.
- JAGTAR SINGH CHAUDHRY (CEO & Chairman) has made 0 purchases and 2 sales selling 5,714 shares for an estimated $1,669,445.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ZS Hedge Fund Activity
We have seen 527 institutional investors add shares of $ZS stock to their portfolio, and 338 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- D. E. SHAW & CO., INC. added 1,879,992 shares (+76546.9%) to their portfolio in Q2 2025, for an estimated $590,204,688
- FMR LLC added 1,639,111 shares (+88.0%) to their portfolio in Q2 2025, for an estimated $514,582,507
- NOMURA HOLDINGS INC removed 1,397,481 shares (-99.7%) from their portfolio in Q2 2025, for an estimated $438,725,185
- DEUTSCHE BANK AG\ removed 1,387,512 shares (-76.8%) from their portfolio in Q2 2025, for an estimated $435,595,517
- HSBC HOLDINGS PLC removed 1,332,637 shares (-95.2%) from their portfolio in Q2 2025, for an estimated $418,368,059
- MARSHALL WACE, LLP removed 1,291,369 shares (-89.0%) from their portfolio in Q2 2025, for an estimated $405,412,383
- GOLDMAN SACHS GROUP INC removed 1,289,378 shares (-42.3%) from their portfolio in Q2 2025, for an estimated $404,787,329
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$ZS Analyst Ratings
Wall Street analysts have issued reports on $ZS in the last several months. We have seen 24 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- RBC Capital issued a "Outperform" rating on 10/02/2025
- Barclays issued a "Overweight" rating on 09/03/2025
- Wedbush issued a "Outperform" rating on 09/03/2025
- JP Morgan issued a "Overweight" rating on 09/03/2025
- Needham issued a "Buy" rating on 09/03/2025
- Rosenblatt issued a "Buy" rating on 09/03/2025
- Baird issued a "Outperform" rating on 09/03/2025
To track analyst ratings and price targets for $ZS, check out Quiver Quantitative's $ZS forecast page.
$ZS Price Targets
Multiple analysts have issued price targets for $ZS recently. We have seen 29 analysts offer price targets for $ZS in the last 6 months, with a median target of $334.0.
Here are some recent targets:
- Steve Koenig from Macquarie set a target price of $390.0 on 10/31/2025
- Matthew Hedberg from RBC Capital set a target price of $350.0 on 10/02/2025
- Kingsley Crane from Canaccord Genuity set a target price of $340.0 on 09/04/2025
- Eric Heath from Keybanc set a target price of $350.0 on 09/03/2025
- Keith Bachman from BMO Capital set a target price of $315.0 on 09/03/2025
- Saket Kalia from Barclays set a target price of $320.0 on 09/03/2025
- Shrenik Kothari from Baird set a target price of $345.0 on 09/03/2025
Full Release
SAN JOSE, Calif., Nov. 03, 2025 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced it has acquired innovative AI security pioneer SPLX, extending the Zscaler Zero Trust Exchange TM platform with shift-left AI asset discovery, automated red teaming, and governance, so organizations can secure their AI investments from development through deployment.
“Today marks an important step in advancing Zscaler’s role as the trusted partner helping organizations securely adopt AI,” said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. “AI is creating enormous value, but its full potential can only be realized when it can be secured. By combining SPLX’s technology with the intelligence of the Zscaler Zero Trust Exchange and its native data protection that classifies, governs, and prevents loss of sensitive data across prompts, models, and outputs, Zscaler will secure the entire AI lifecycle on one platform. This will strengthen our industry leadership and give customers the confidence to safely embrace AI.”
As AI drives record infrastructure investments projected to exceed $250 billion by end of 2025 1 , organizations face a rapidly expanding attack surface and shadow AI sprawl. Continuously evolving models, agents, and large language models (LLMs) require ongoing discovery, risk assessment, and remediation, while AI agents and Model Context Protocol (MCP) servers demand strict guardrails and new techniques to secure data and AI assets across the lifecycle.
SPLX’s innovative technology and deep expertise in AI red teaming, asset management, threat inspection, prompt hardening and governance will expand Zscaler’s current capabilities, creating a new, dedicated and natively integrated layer of AI protection within the Zscaler Zero Trust Exchange platform, that includes:
-
AI Asset Discovery and Risk Assessment
: Discovery extends beyond public generative AI applications and public clouds to include AI models, workflows, code repositories and RAGs and MCP servers in both public and private deployments.
-
Automated AI Red Teaming and Remediation
: From development to production, with 5,000+ purpose-built and domain specific attack simulations to find risks and vulnerabilities, and offer remediation in real time.
-
AI Runtime Guardrails and Prompt Hardening
: Expands Zscaler’s current AI Runtime Guardrails that protect sensitive data and block malicious attacks between AI apps and LLMs, as well as agentic workflows, to include deep visibility within development environments and automate Guardrails for risky AI assets.
- AI Governance and Compliance : Risk mitigation and support for organizations to shift from reactive defense to proactive protection for their valuable AI investments, and comply with governance frameworks.
“Zscaler and SPLX share a vision to confront the vast new attack surface created by rapidly expanding AI infrastructure investments,” said Kristian Kamber, CEO and co-founder of SPLX. “By joining forces, we’ll bring our innovation to one of the most trusted security platforms in the world, securing AI innovation at the speed organizations are adopting it.”
Source: 1) Goldman Sachs, “ Technology in 2025: The Cycle Rolls On ” February 2, 2025
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Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected benefits of the proposed acquisition to Zscaler and its customers and plans regarding SPLX’s capabilities. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to Zscaler’s ability to successfully integrate SPLX technology into our cloud platform, the potential impact of the acquisition to the existing SPLX business and the retention of SPLX employees. Additional risks and uncertainties are set forth in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on September 11, 2025, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future.
About Zscaler
Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The AI-powered Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.
Media Contact
Taylor Dunton, Senior Director, Global Public Relations,
[email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/231c4e82-96d9-4e2e-9120-68f51ec9eaa3